Q2 2009 RCOM SnapshotReliance Communications has reported net profits (consolidated) of Rs. 1530.8 crores, up 1.2 percent since the last quarter. Total revenues (consolidated) for the quarter were Rs. 5645 crores up 6.07 percent quarter on quarter, while EBITDA (consolidated) grew by 2.28 percent quarter on quarter to Rs. 2301.6 crores.

Reliance currently offers CDMA services in 20 service areas, and GSM services in 8 circles. They intend to expand GSM services to 14 circles by the end of the calendar year 2008.

VAS Revenues & ARPU

As per our calculations, RCom’s VAS revenues were flat, growing by just 1.89% quarter on quarter to Rs. 110.8 crores/month from Rs. 108.81 crores/month. At the same time, ARPU declined for the quarter, to 271 from 282. With around 5.7 million subscribers added in the quarter, VAS APRU and contribution of Non-SMS VAS services declined. The overall Non SMS VAS revenues also increased by just 1.11% to Rs. 92.64 crores a month. It does appear that the new subscribers on RCom’s networks are not contributing significantly to VAS revenues.

RCOM VAS Revenues Q2 2009

Do bear in mind that in case of RCom, Non-SMS VAS, like Voice, Internet (WAP), Gaming, Music (Ring-Back Tones) etc, contribute as much as 83.56% to VAS ARPU, and their SMS revenues are rather low.

Subscriber Addition, Minutes Of Use & Churn

RCom’s Wireless subscriber base was up 12% quarter on quarter to 56,045,885 from 50,772,888. Net subscriber additions were up to 5,272,997 from 4,979,212 last quarter. 99.1 percent of the new additions were prepaid, and they now constitute 91.7% of total wireless customers. Minutes of use per subscriber were down marginally, to 423 from 424. RCom has fairly low subscriber churn, at 1.3%.

Mobile Services: 56,046000 up 10.39% from 50,773,000
CDMA: 46,840,000 up from 42,707,000
GSM: 9,206,000 up from 8,066,000
Marketshare: 18.1%, with 18.6% of net additions
Prepaid: 91.7% of the total subscriber base, with 99.1% of new additions
Churn: 1.3%
Minutes of Use: 423 down from 424
Distribution Channel: 1,008,031 outlets.

– Access lines – 1,259,000, up from 1,147,000
– operating in 44 cities, 821,000 buildings
– Added 112,000 lines in the quarter, down from 117,000 in the last quarter, and 130,000 in the Q408
– Average Revenue Per Line – Rs. 1668, down from 1715
– Operational in 18 service areas, 42 towns
– Claims 60% of USB Data Card market

already operational in the top 10 cities in India, and claim to have received government approvals for deployment of WiMAX in 184 more cities

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